Mauritian firm seals P150m Letlole la Rona equity deal
Friday, November 22, 2019
Done deal: Shenjere-Mutiswa says Grit will be LLR's partner of choice in Botswana and into Africa
The deal means Grit now holds 30% equity in Letlole, up from 6.25 percent, while the BDC is down to 42% from 65.8%.
The purchase consideration for the deal is not cash, but rather the issuance of new Grit shares to the BDC at US$1.40 per share. The deal could give the BDC what is possibly its first offshore equity, a strategic direction the Corporation has been pushing for sometime.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...